Are you planning to buy a house in Toronto but wondering how much you need to save? Understanding the true costs will help you confidently plan your purchase and avoid surprises during your home-buying journey.
Here’s a clear breakdown of what it costs to buy a home in Toronto in 2025.
1️⃣ Average Home Prices in Toronto (2025)
In 2025, Toronto home prices remain stable with moderate growth in many neighbourhoods due to limited supply and high demand:
Condos: $600,000 – $850,000
Townhomes: $850,000 – $1,200,000
Detached Homes: $1,200,000 – $2,000,000+
Prices vary by neighbourhood. For example, homes in The Beaches, Leslieville, and Midtown typically command premium prices, while areas like Scarborough and East York may offer more affordable entry points.
2️⃣ Down Payment Requirements
In Canada, the minimum down payment is:
✅ 5% for homes under $500,000
✅ 10% on the portion between $500,000 and $999,999
✅ 20% for homes $1,000,000 and above
For example:
$750,000 home: $50,000 (5% of $500,000) + $25,000 (10% of $250,000) = $75,000 minimum down payment.
3️⃣ Closing Costs
Budget 3-5% of the purchase price for closing costs, which include:
✅ Land Transfer Tax: Provincial + Toronto municipal (use an online calculator for precise amounts).
✅ Legal fees & disbursements: $1,500 – $2,500
✅ Home inspection: $400 – $600
✅ Title insurance: ~$300 – $500
✅ Appraisal (if required): ~$300 – $500
✅ Moving costs and setup expenses
4️⃣ Ongoing Homeownership Costs
Besides your mortgage, factor in:
✅ Property taxes (~0.6-0.7% of property value annually)
✅ Home insurance ($700 – $1,500/year)
✅ Utilities (water, heat, electricity, internet)
✅ Maintenance and repairs (1-2% of home value annually)
5️⃣ First-Time Buyer Incentives
If you are a first-time home buyer in Toronto, you may qualify for:
✅ Land Transfer Tax rebate (up to $8,475 combined provincial + municipal)
✅ RRSP Home Buyers’ Plan (borrow up to $60,000 from your RRSP tax-free)
✅ First-Time Home Buyer Incentive (5% or 10% shared equity with the government)
These incentives can significantly reduce your upfront costs when buying your first home.
🗝️ Example: Cost Breakdown for a $900,000 Home in Toronto
✅ Down Payment: $65,000 (minimum) – $180,000 (20%)
✅ Closing Costs (4%): ~$36,000
✅ Total upfront needed: ~$100,000 – $220,000 depending on down payment strategy and incentives used.
Is It Worth Buying a Home in Toronto in 2025?
Toronto remains one of Canada’s strongest real estate markets, offering:
✅ Long-term appreciation potential
✅ A diverse economy and job market
✅ A desirable place to live for families and professionals
If you are financially ready, buying now can help you build equity and stability in a competitive market.
📲 Ready to Buy Your Home in Toronto?
At 416HomeForSale, we help buyers:
✅ Find the right neighbourhood
✅ Understand true homeownership costs
✅ Navigate the Toronto market with confidence
Follow us on Instagram @416homeforsale for daily market updates and featured listings.
🏠 Let’s Find Your Toronto Home Together
Ready to start your journey? Contact us today for a personalized home search consultation.